Seadrill books order for two more drillships at Samsung!

found at Marine Log

[I]November 11, 2010[/I]
[B]Seadrill orders two drillships at Samsung[/B]

Seadrill reports that it has entered into a turnkey contract to build up to four new ultra-deepwater drillships at Samsung Heavy Industries, South Korea. The first two drillships are firm orders with deliveries set for the first and second quarter 2013.

Seadrill says the total project price per rig is estimated to be less than $600 million, which includes a turnkey contract with the yard, project management, drilling and handling tools, spares, capitalized interest and operations preparations.

In a regulatory filing, Samsung valued the contract for the first two ships at $1.08 billion. The contract further includes a fixed price option, to be declared during the first quarter 2011, for further two drillships. The dual derrick drillships are of an improved design compared to the three previous drillships Seadrill has taken delivery of from Samsung, with further enhanced capacity related to water depth, technical capabilities as well as increased accommodation capacity.

The new dynamically positioned drillships will be capable of operations in water depths up to 12,000 feet with a hook load capability of 1,250 tons, suiting them for operations in challenging areas such as the Gulf of Mexico, Brazil and West Africa.
The drillships will be the first newbuilds to be outfitted with seven ram configuration of the BOP (Blow Out Preventer) stack. Seadrill says its decision to add another two ultra-deepwater newbuilds to the existing fleet is based on the continued strength of the offshore drilling market, the return that these investments are expected to deliver and the financial flexibility generated by the company’s contract backlog.

Ordering new drillships is considered financial superior to other alternative investments. Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS, says: “Our commitment to establish Seadrill as a leading drilling contractor through investing in new high specification offshore drilling units built by quality yards has been well received by our customers and investors. With the most modern drilling fleet in the world and a total contract backlog of $11.5 billion, we have created a solid platform for further growth and a continued high return to our shareholders. These orders confirm our positive view on the market outlook as well as our good experience with this design and the Samsung shipyard.”

With all the new rigs and ships being delivered this year and next that still don’t have contracts, you’d think that the drilling companies would wait awhile before ordering more. They obviously know something that we don’t! I believe that it is coming time for all the old shyte in the world built before the late 90’s to be scrapped! $400k dayrates for 2nd and 3rd generation rigs is just plain stupid when the majors can get brand new equipment for only slightly more $$$.

To those who know drillships, the Samsung ships are the top of the game. They have built more DP drillships now than everyone else put together and have a dozen more left to deliver. What is amazing is how they can offer a complete turn-key brandnew ship for only $600M…that is an absolute bargain and it can not be touched even remotely by Keppel/FELS!

On top of all this, isn’t Seadrill supposed to be the top contender to buy Pride?

It’s good news in an otherwise dismal swamp of news.
Guess a rising tide floats all ships.
Seems like the newbuilds may may help some of the guys with deep draft licenses but the limited license holders are on a course to extinction as far as I can see.

Seems like the newbuilds may may help some of the guys with deep draft licenses but the limited license holders are on a course to extinction as far as I can see.

Please explain your logic on that. With the passage of legislation that just lifted the tonnage restrictions on OSV’s if anything it’s gotten better.

If your implying that the new rules coming are going to kill upgrades I doubt it. They make more sense and while yes there will a lot more time spent in the class room in the end it makes it easier to work your way up.

I seriously doubt Seadrill will get the Pride drillships. It would be too big of an investment for the return, especially if they can get drillships built for 600M brand new. Everyone at Seadrill is excited to have new vessels to be built on the books. To us it means more opportunities. I think Seadrill is going to be around for a while.

http://www.seadrill.com/modules/module_123/proxy.asp?C=42&I=2345&D=2&mid=179

http://www.seadrill.com/modules/module_123/proxy.asp?C=42&I=2344&D=2&mid=179

[QUOTE=Jemplayer;44050]Please explain your logic on that. With the passage of legislation that just lifted the tonnage restrictions on OSV’s if anything it’s gotten better.

If your implying that the new rules coming are going to kill upgrades I doubt it. They make more sense and while yes there will a lot more time spent in the class room in the end it makes it easier to work your way up.[/QUOTE]

HE said as far as he could see. At 69 years, it might not be that far…just saying.